CP3219A Notice of Deficiency (90-Day Letter)

A CP3219A is a statutory notice of deficiency, often called a 90-day letter. It tells you the IRS has determined you owe more tax than you reported and explains how it calculated the amount. It also gives you the right to challenge that determination in U.S. Tax Court before you pay. The clock on that right is short and cannot be extended.

Why you received it

The most common route is a mismatch between your return and information the IRS holds, such as employer or bank reports, that was not resolved after a CP2000. The notice of deficiency also follows audits. For a mail audit it is Letter 3219, and for an in-person audit it is Letter 531, per IRS Taxpayer Advocate Service materials. The IRS explains it as a proposed change in your tax, along with interest and any penalties that apply.

The 90-day and 150-day periods

The IRS appeal rights publication says you must file your petition within the timeframe specified in the notice, usually 90 days, or 150 days if the notice is addressed to a person outside the United States. The period is set by law, and you have only that timeframe even if you keep talking with examiners or the IRS Independent Office of Appeals. The Tax Court cannot consider a petition filed late.

The 150-day rule depends on the address on the notice, not on where you happened to be when it was mailed. If you moved abroad, make sure the IRS has your current address (Form 8822) so notices reach you, and watch the date on the notice itself.

Your options

1. Agree. Sign and return the enclosed Form 5564, Notice of Deficiency - Waiver, to allow the IRS to assess the tax without waiting for the period to run. The IRS notes that the amounts on Form 5564 may differ from your earlier notice because some items cannot be challenged in Tax Court.
2. Disagree and work it out with the IRS. Reply promptly with Form 5564 plus supporting documents and a signed statement explaining which items you dispute. Understand that this does not stop the petition clock.
3. Disagree and petition the Tax Court. You file the petition with the court, not the IRS. The Tax Court encourages electronic filing through its DAWSON system. A filing fee applies, which may be waived if you qualify. If the amount in dispute for a tax year, including penalties, is $50,000 or less, you may use the court's simplified small tax case procedures, according to the IRS.
4. Do nothing. The IRS will assess the proposed changes and send a bill. Interest accrues until the balance is paid, and penalties may apply.

The unfiled-return version: CP3219N

If you did not file a return, the IRS may send a CP3219N, a notice of deficiency based on income reported by employers and others. The 90 and 150 day periods are the same, and filing a return after the notice does not extend them. You can sign and return the response form, file your own return by the date on the notice, or petition the Tax Court. See unfiled return notices.

Interest and penalties

Interest runs on the unpaid amount, and penalties such as the accuracy-related penalty may apply. Paying sooner can stop interest on the part you pay, but ask a professional how a payment interacts with a Tax Court case first.

Common mistakes

• Missing the date because the IRS is "still reviewing" your documents.
• Mailing the petition to the IRS instead of filing with the court.
• Assuming a phone call to the IRS stops the clock.
• Forgetting that in Tax Court you may represent yourself or use someone admitted to practice there.

When to involve a CPA

Bring a CPA in immediately. A CPA can evaluate whether the IRS is right and assemble the support during the 90 days. Tax Court itself can be handled by you or by a representative admitted to practice there, and we will tell you candidly if an attorney or a Low Income Taxpayer Clinic is a better fit. With a signed Form 2848, we can talk to the IRS about the underlying issue.

How we can help

We can review the notice, rebuild your income and expenses, and prepare the response. See IRS appeals and our IRS representation services, or contact us right away.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.